My thoughts and close look at what this is really about and the help of Wikipedia
Cloud computing is a colloquial expression used to describe a variety of different types of computing concepts that involve a large number of computers that are connected through a real-time communication network (typically the Internet). Cloud computing is a jargon term without a commonly accepted non-ambiguous scientific or technical definition. In science, cloud computing is a synonym for distributed computing over a network and means the ability to run a program on many connected computers at the same time. The phrase is also, more commonly, used to refer to network based services which appear to be provided by real server hardware, but which in fact are served up by virtual hardware, simulated by software running on one or more real machines. Such virtual servers do not physically exist and can therefore be moved around and scaled up (or down) on the fly, without affecting the end user – arguably, rather like a cloud.
The popularity of the term can be attributed to its use in marketing to sell hosted services in the sense of application service provisioning that run client server software on a remote location.
Cloud computing relies on sharing of resources to achieve coherence and economies of scale similar to a utility (like the electricity grid) over a network. At the foundation of cloud computing is the broader concept of converged infrastructure and shared services.
The cloud also focuses on maximizing the effectiveness of the shared resources. Cloud resources are usually not only shared by multiple users but as well as dynamically re-allocated as per demand. This can work for allocating resources to users in different time zones. For example, a cloud computer facility which serves European users during European business hours with a specific application (e.g. email) while the same resources are getting reallocated and serve North American users during North America’s business hours with another application (e.g. web server). This approach should maximize the use of computing powers thus reducing environmental damage as well, since less power, air conditioning, rackspace, and so on, is required for the same functions.
The term “moving to cloud” also refers to an organization moving away from a traditional CAPEX model (buy the dedicated hardware and depreciate it over a period of time) to the OPEX model (use a shared cloud infrastructure and pay as you use it).
Proponents claim that cloud computing allows companies to avoid upfront infrastructure costs, and focus on projects that differentiate their businesses instead of infrastructure.Proponents also claim that cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and enables IT to more rapidly adjust resources to meet fluctuating and unpredictable business demand.
The underlying concept of cloud computing dates back to the 1950s, when large-scale mainframe computers became available in academia and corporations, accessible via thin clients/terminal computers, often referred to as “dumb terminals”, because they were used for communications but had no internal processing capacities. To make more efficient use of costly mainframes, a practice evolved that allowed multiple users to share both the physical access to the computer from multiple terminals as well as to share the CPU time. This eliminated periods of inactivity on the mainframe and allowed for a greater return on the investment. The practice of sharing CPU time on a mainframe became known in the industry as time-sharing.
John McCarthy opined in the 1960s that “computation may someday be organized as a public utility.”[ Almost all the modern-day characteristics of cloud computing (elastic provision, provided as a utility, online, illusion of infinite supply), the comparison to the electricity industry and the use of public, private, government, and community forms, were thoroughly explored in Douglas Parkhill’s 1966 book, The Challenge of the Computer Utility. Other scholars have shown that cloud computing’s roots go all the way back to the 1950s when scientist Herb Grosch (the author of Grosch’s law) postulated that the entire world would operate on dumb terminals powered by about 15 large data centers.Due to the expense of these powerful computers, many corporations and other entities could avail themselves of computing capability through time sharing and several organizations, such as GE’s GEISCO, IBM subsidiary The Service Bureau Corporation (SBC, founded in 1957), Tymshare (founded in 1966), National CSS (founded in 1967 and bought by Dun & Bradstreet in 1979), Dial Data (bought by Tymshare in 1968), and Bolt, Beranek and Newman (BBN) marketed time sharing as a commercial venture.
In the 1990s, telecommunications companies,who previously offered primarily dedicated point-to-point data circuits, began offering virtual private network (VPN) services with comparable quality of service, but at a lower cost. By switching traffic as they saw fit to balance server use, they could use overall network bandwidth more effectively. They began to use the cloud symbol to denote the demarcation point between what the provider was responsible for and what users were responsible for. Cloud computing extends this boundary to cover servers as well as the network infrastructure.
As computers became more prevalent, scientists and technologists explored ways to make large-scale computing power available to more users through time sharing, experimenting with algorithms to provide the optimal use of the infrastructure, platform and applications with prioritized access to the CPU and efficiency for the end users.
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